Great Britain's retail sales volumes declined by 0.4% in September 2026 compared to August, exceeding economists' expectations of a 0.1% fall, according to data from the Office for National Statistics (ONS). This unexpected downturn signals increasing caution among households as Chancellor John Healey prepares to deliver his first budget.

This monthly decrease follows a revised 0.7% rise in August and a 0.4% fall in July. Despite the September dip, overall retail sales volumes for the third quarter of 2026 increased by 0.7% compared to the second quarter. Year-on-year, September's volumes were 0.8% higher, a slower growth rate than the 2.7% recorded in August.

What the records show

On October 23, 2026, the ONS reported that the quantity of goods bought by consumers in Great Britain decreased by 0.4% in September from the previous month. This figure was worse than the 0.1% decline anticipated by economists. For the full third quarter of 2026, retail sales volumes rose by 0.7% compared with the second quarter. Annually, retail sales volumes increased by 0.8% in September, a noticeable slowdown from the 2.7% growth seen in August.

What changed and for whom

Non-store retailing, which mainly includes online sales, experienced the steepest decline within the sector, falling by 2.2% in September. Online clothing retailers specifically reported that the release of their autumn and winter collections did not perform well due to unseasonably warm weather. Across the non-food store category, sales volumes fell by 0.4%, with declines noted in clothing and footwear stores, sports equipment stores, and household goods retailers. Retailers attributed these drops to reduced footfall and consumers cutting back on spending. In contrast, automotive fuel sales saw a 2.2% increase in volume during September, despite rising fuel prices.

What the subject has said publicly

Retail organizations are urging the government to address tax pressures. The British Retail Consortium (BRC) has called for a freeze on business rates to prevent an estimated £250 million in additional costs for retailers from April 2027. This advocacy comes as Prime Minister Andy Burnham announced a £210 million package in late September 2026 to regenerate high streets across England, aiming to convert vacant shops and disused buildings into community hubs and cafes.

What we could not confirm

The specific details of the proposed business rates freeze by the British Retail Consortium were not outlined in the available evidence. The precise allocation or expected impact timeline of the £210 million high street regeneration package announced by Prime Minister Andy Burnham remains unclear.